Navigating the complexities of accounting changes and error corrections can be a daunting problem for accountants, especially when dealing with the intricacies of financial statement revisions. This course agitates the issue by highlighting the challenges in accurately reflecting changes in accounting principles or estimates and correcting identified errors. Jeff Sailor provides a solution with his insightful coverage of chapters 18-20 from Stephen Bragg's Accountant's Guidebook. The course details the rules for handling these situations, including essential disclosures and the steps needed to close the books and issue financial statements. Participants will gain the knowledge to manage these changes confidently, ensuring the integrity and accuracy of financial reporting.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Choose an example of a change in accounting estimate.
Identify a situation where you would adjust the financial statements of prior interim periods of the current fiscal year.
Cite when to change an accounting principle and the type of change that requires retrospective application to prior accounting periods.
State why generating customer invoices is an essential part of the closing process and why you want to eliminate intercompany transactions.
Cite the basis for accruing a tax liability.
Specify a situation where a reserve should not be created.
Identify why you must close subsidiary ledgers when closing the books.
Define a net operating loss carryforward.
Define the purpose of the comparative balance sheet and the statement of retained earnings.
Major Topics
Changes in Accounting Principle
Changes in Accounting Estimate
Changes in Reporting Entity
Correction of an Error in Previously Issued Financial Statements
Corrections Related to Prior Interim Periods
Accounting Changes Disclosures
Error Corrections Disclosures
Updating Reserves
Issuing Customer Invoices
Valuing Inventory
Calculating Depreciation
